USD/CAD Forex Signal – 28 May 2018

Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at 1.2914.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm New York time, during the next 24-hour period only.

Long Trades

— Go long after the next bullish price action rejection following the next touch of 1.2946 or 1.2914.

— Place the stop loss 1 pip below the local swing low.

— Move the stop loss to break even once the trade is 20 pips in profit.

— Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Short Trades

— Go short after the next bearish price action rejection following the next touch of 1.3000 or 1.3047.

— Place the stop loss 1 pip above the local swing high.

— Move the stop loss to break even once the trade is 20 pips in profit.

— Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

USD/CAD Analysis

I wrote last Thursday that the best approach to this pair was likely to be looking for longs close to 1.2750 and shorts close to 1.2914 until there was a major change. The major change has finally come after many days of this range holding, with a bullish break above 1.2914 followed by a reasonably strong push up which now looks to have run out of momentum close to the psychologically important level of 1.3000. There is no long-term trend, although the pair is moving up due to U.S. Dollar strength and weakness in the Canadian Dollar caused by a strong fall in the formerly strong price of Crude Oil over recent days. I have no bias today as trading is likely to be very thin due to the public holidays in London and New York. It would be a hard call between the big number at 1.3000 holding for bears or the recent bullish momentum securing finally a break above that level.

There is nothing due today concerning either the CAD or the USD. It is a public holiday in the United States.

This article provided by NewsEdge.